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TMI Blog2010 (11) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... first subjected to hot rolling. The hot rolled pieces after being subjected to annealing and pickling are subjected to cold rolling, as a result of which the stainless steel strips called pattas and patties (SS pattas & SS patties) are obtained. These SS pattas/patties are classifiable under sub-heading 7220.20 of the Central Excise Tariff. The SS Pattas/Patties are cut into circles meant for manufacture of utensils, classifiable under sub-heading 7222.50, for which tariff rate of duty itself is nil, and other circles classifiable under sub-heading 7222.40 which are chargeable to duty at 16% ad valorem. The SS circles for utensils were being used in the factory for manufacture of SS utensils of sub-heading 7323.90. The SS utensils of sub-h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.50 during the period from Aug' 2000 to June, 2001 and also for imposition of penalty on the Appellant under Rule 173Q of the Central Excise Rules, 1944. Total duty demanded by these two show cause notices was Rs. 51,61,284 (Rs. 48,57,172 + Rs. 3,04,112/-). The show cause notices were adjudicated by the Dy. Commissioner vide order-in-original No. 37/DL/02, dated 26-4-02 and No. 77/DC/02, dated 29-7-02 by which the duty demands of Rs. 48,57,172/- and Rs. 3,04,112/- respectively were confirmed and penalty of Rs. 5 lakhs and Rs. 50,000/- respectively was imposed on the Appellant under Rule 173Q(1) of the Central Excise Rules, 1944. 1.3On appeals being filed to Commissioner of Central Excise (Appeals), the CCE (Appeals) vide order-in-appeal N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of clearances of utensils under Rule 57CC were ordered to be adjusted against the duty demands confirmed; and (c)nterest on duty under Section 11AB was also demanded. 1.6The appeals against the above two orders of Asstt. Commissioner were disposed off by CCE (Appeals) vide order-in-appeal No. 262-265/SSS/PCK/07, dated 18-4-07 by which while the orders of the Asstt. Commissioner confirming the duty demands of Rs. 42,29,214/- and Rs. 2,74,727/- were upheld, the part of the Asstt. Commissioner's order allowing the adjustment of the amounts of 8% of the sale price of utensils under Rule 57CC of the Central Excise Rules, 1944 from the duty demands confirmed was set aside on the ground that the adjustment so allowed is not legally correct. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Departmental Representative, pleaded that the issue involved in this case is as to whether the cold rolling of hot rolled products amounts to manufacture, that this issue is no longer res intengra, as the same has been decided by the Tribunal by a detailed order in case of Bharatbhai B. Gala v. CCE, Ahmedabad-I reported in 2007 (214) E.L.T. 419 wherein the Tribunal held that cold rolling of hot rolled products amounts to manufacture, that same view has been taken by the Tribunal in cases of Indian Strips v. CCE, Ahmedabad reported in 2004 (173) E.L.T. 265 and CCE, Panchkula v. Mamta & Co. reported in 2010 (251) E.L.T. 279; that in the judgment of Hon'ble Supreme Court in case of CCE, Chandigarh-II & Another v. Steel Strips Ltd. reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess of manufacture as cold rolled SS strips are a distinct marketable goods different from hot rolled SS strips. Same view had been taken by the Tribunal earlier in case of Indian Strips v. CCE, Ahmedabad (supra). We, therefore, hold that the cold rolled SS pattas/patties are excisable goods chargeable to duty under sub-heading 7220.20 of the tariff. Since the cold rolled SS pattas/patties are cleared captively for manufacture of SS circles for utensils chargeable to nil rate of duty, the CR pattas/patties are not eligible for duty exemption under Notification No. 67/95-C.E., as this exemption is not available if the finished products are fully exempt from duty or are chargeable to nil rate of duty, except for certain exceptions, as menti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsils should not be adjusted against the duty demand on cold rolled SS pattas/patties and the CCE (Appeals)'s order disallowing this adjustment is not correct. 4. In view of the above discussions, while the CCE (Appeals)'s order holding that the Appellant are not eligible for duty exemption under Notification No. 67/95-C.E. in respect of clearances of cold rolled SS pattas/patties for captive consumption for use in the manufacture of SS circles for utensils and confirming duty demands on this basis, is upheld, the part of the impugned order denying the adjustment of the amount equal to 8% of the price of SS utensils paid by the Appellant under Rule 57CC, against the duty demands is set aside. The matter is remanded to the original adj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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